Bank of America will likely slash 8,000 jobs from its consumer banking division sooner rather than later.

That's according to remarks made by BofA's retail banking head and consumer banking co-head Thong Nguyen at a conference on Wednesday. Nguyen did not offer a timeframe but noted that the number of employees, currently at approximately 68,400, will likely decrease to the "low 60s."

Many of these cuts will occur through back office attrition rather than layoffs, reports USA Today. This is likely part of a broader cost-cutting and resource reallocation program, a reaction to consumers' changing banking habits.

Customers are more frequently using mobile and digital channels in lieu of branch banking for their everyday tasks. BI Intelligence, Business Insider's premium research service, found that almost 75% of millennials with a bank account visit a branch once or less per month. Meanwhile, 33.3% of consumers use mobile banking channels and 60% use online banking channels at least once per week. Bank of America has 20 million mobile banking customers.

Branches, therefore, must start to serve a different function if digital channels can replace much of what they do. Although, users still have positive experiences in branches, especially with tasks that require a more human touch, such as applying for a mortgage.

Therefore, Bank of America's plan could address this because it can reinvest savings from branch closures and job losses to areas such as mortgage lending, small business lending, and personal investment advising, reports the Financial Times. This would let the bank get more value from its higher margin segments and adjust branches' functions to better fit consumers' needs.

More millennials are moving toward digital banking, and as a result, they're walking into their banks' traditional brick-and-mortar branches less often than ever before.

This generation accounts for the greatest share of the U.S. population at 26% and the employed population at 34%, so it's easy to see why their behaviors and preferences will have a profound effect on the future of the banking industry, particularly with regard to the way banks interact with their customers.

Third parties are expanding their role in providing services that consumers use to manage their money. And the more that role grows, the more it will disrupt the relationship between banks and their customers.

To paint a clearer picture of the future of the banking industry, John Heggestuen, managing research analyst at BI Intelligence, surveyed 1,500 banked millennials (ages 18-34) on their banking behaviors and preferences — from their preferred banking devices, to what banking actions they perform on those devices, to how often they perform them.

The bank branch will become obsolete. It will be some time before the final death rattle, but improving online channels, declining branch visits, and the rising cost per transaction at branches are collectively leading to branch closures.

Banks that don't act fast are going to lose relationships with customers. Consumers are increasingly opting for digital banking services provided by third-party tech firms. This is disrupting the relationships between banks and their customers, and banks are losing out on branding and cross-selling opportunities. For many banks, this will require further commoditization of their products and services.

The ATM will go the way of the phone booth. Relatively low operational costs compared to bank branches, paired with customers' preference for in-network ATMs, makes the ATM an attractive substitute for bank tellers. But as cash and check transactions decline, the ATM will become nonessential, ultimately facing the same fate as the physical branch.

The smartphone will become the foundational banking channel. As the primary computing device, the smartphone has the potential to know much more about banks' customers than human advisors do. The smartphone goes everywhere its user goes, has the ability to collect user data, and is already used for making purchases. Therefore, the banks that will endure will be those that offer banking services optimized for the smartphone.

In full, the report:

Analyzes how millennials use bank branches and why - even though there are a large share of millennials who still use branches, making significant investments in these channels isn't a good move for banks.

Explains how mobile payments and mobile point-of-sale adoption by small retailers will make the ATM obsolete.

Describes how digital channels, particularly the smartphone, will become the foundation of the bank-customer relationship.

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